GEM Ltd leases a photocopy machine with terms that include a fixed fee each month plus a charge for each photocopy made. GEM made 5,000 copies and paid a total of $600 in January. In April, they paid $400 for 3,000 copies. a) What is the variable cost per copy if GEM uses the high-low method to analyze costs? b) How much would GEM Ltd pay if it made 7,500 copies?
GEM Ltd leases a photocopy machine with terms that include a fixed fee each month plus a charge for each photocopy made. GEM made 5,000 copies and paid a total of $600 in January. In April, they paid $400 for 3,000 copies. a) What is the variable cost per copy if GEM uses the high-low method to analyze costs? b) How much would GEM Ltd pay if it made 7,500 copies?
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 11EA: Markson and Sons leases a copy machine with terms that include a fixed fee each month plus acharge...
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GEM Ltd leases a photocopy machine with terms that include a fixed fee each month plus a charge for each photocopy made. GEM made 5,000 copies and paid a total of $600 in January. In April, they paid $400 for 3,000 copies.
- a) What is the variable cost per copy if GEM uses the high-low method to analyze costs?
- b) How much would GEM Ltd pay if it made 7,500 copies?
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